Finance
swthny007Consider three bonds with 6.6% coupon rates, all selling at face value. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has maturity 30 years.
| a. | What will be the price of each bond if their yields increase to 7.6%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| 4 Years | 8 Years | 30 Years | |
| Bond price | $ [removed] | $ [removed] | $ [removed] |
| b. | What will be the price of each bond if their yields decrease to 5.6%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| 4 Years | 8 Years | 30 Years | |
| Bond price | $ [removed] | $ [removed] | $ [removed] |
12 years ago
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